![F&O Radar | Deploy Bull Call Spread in Nifty to benefit from bullish stance](https://img.etimg.com/thumb/msid-111823918,width-210,height-158,imgsize-108244,resizemode-75/fo-radar-deploy-bull-call-spread-in-nifty-to-benefit-from-bullish-stance.jpg)
“It (Nifty) continues escalating upwards steadily within a smaller intraday range and any minor dips are getting absorbed quickly by the bulls,” said Chandan Taparia, Senior VP, Equity Derivatives & Technicals, Broking & Distribution, Motilal Oswal.
Currently, it holds above 24,200 zones, momentum could extend towards 24,750 and 25,000 zones, added Chandan.
India VIX was up by 0.25% from 14.11 to 14.22 levels. Volatility slightly inched higher but is hovering at its lower zones which is still comforting for the bulls to add momentum.
Option data suggests a broader trading range in between 24,200 to 25,000 zones while an immediate range between 24,400 to 24,800 levels.
“Overall we can ride the positive to range-bound stance and are expecting that any small declines could be bought for an upside move towards 24900-25000 zones,” Chandan said.
Given such a scenario, Chandan Taparia believes that one can initiate a Bull Call Spread options strategy to get the benefit of a bullish stance without worrying much about theta decay.
Bull Call Spread
A bull call spread is an options trading strategy that uses two call options. It is deployed usually when a trader anticipates a moderate rise in the price of the underlying asset.
![Chart 1 Chart 1](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
(Prices as of July 16)
Below is the payoff graph of the strategy:
![Chart 2 Chart 2](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
(Source: Motilal Oswal)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price